GM cuts Chevy Volt price by $5,000

DETROIT, MI- General Motors Co. is lowering the starting price of the Chevrolet Volt by $5,000.

The Detroit-based automaker Tuesday said the 2014 extended-range vehicle will start at $34,995, including an $810 destination fee.

The lower pricing excludes an up to $7,500 federal tax credit. Depending on the incentive, which is based on individual tax liability, Michigan buyers could purchase the vehicle starting at $27,495. Other states, like California, have additional incentives that could lower the price even more.

“The lower price and cost savings from driving on electricity provide Volt owners an unmatched balance of technology, capability and cost of ownership,” said Don Johnson, U.S. vice president of Chevrolet sales and service, in a statement. “The 2014 Volt will offer the same impressive list of features, but for $5,000 less.”

Through July, Volt sales were up 9.2 percent compared to the same time last year to 11,643 units sold.

GM CEO and Chairman Dan Akerson earlier this year said the Detroit-based automaker should be able to cut the price of its next-generation Volt by up to $10,000. GM has not released many, if any, official details about when the next-generation Volt will be released.

The current Volt can travel up to 38 miles on battery power alone before a gasoline engine engages to power the motor. The range-extending engine gives the Volt up to 380 total miles (615 km) of total driving range.

GM said the 2014 Volt should be available in dealer showrooms late this summer and feature two new colors – Ashen Gray Metallic and Brownstowne Metallic for the 2014 model year – and a leather-wrapped steering wheel.

GM builds the Volt at its Detroit-Hamtramck Assembly Plant. It will build theCadillac ELR, which shares the Volt's powertrain, at the same facility, alongside the Volt's overseas counterparts and Chevrolet Impala and Malibu sedans.